Just as important as building a website that looks good and functions well is understanding the role conversion-rate optimization (CRO) can play in the success of your business. 

The e-commerce conversion funnel should look familiar to most web users. Still, for retailers and online merchants, it is a very effective way to help them gauge their online store’s user experience (UX). The funnel highlights key metrics for improving user experience, like cart abandonment and conversion rates.

Although it’s hard to pinpoint a specific conversion rate for stores, most consumer categories have conversion rates of 1–10 percent—i.e., one out of every ten people who visit a store buys something. If that’s the case, then what about the remaining nine visitors? Has their experience been positive enough to make that sale elsewhere?

The purpose of this guide is to help an online retailer or an E-commerce owner to understand the e-commerce conversion funnel process better. It will help to know how it works, followed by an understanding of the key steps that must be carried out while one is in the sales funnel process.

It’s time you slice & dice your way to more conversions by taking advantage of the e-Commerce conversion funnel. Let’s get started.

What is a Conversion Funnel in E-commerce?

In e-commerce, a conversion funnel is a process of moving potential customers through the sales process. The steps in this process are defined by you and can include any number of activities that you hope will lead to sales.

The idea behind a conversion funnel is simple: You want as many people as possible to visit your site, and then you want as many people as possible to take action (such as buying something). But it’s not always easy to get those visitors to take action. That’s where your funnel comes in.

Conversion funnels help you optimize your website for maximum conversions by focusing on important metrics like pageviews and bounce rate, which helps you identify areas where users drop off during their visits. This allows you to make changes that improve user experience and increase conversion rates.

A good conversion funnel starts with a landing page that generates qualified leads and moves them through the sales cycle until they become customers. 

When done correctly, this process can increase leads by up to 400%!

The Importance of Creating an E-commerce Sales Funnel

The e-commerce industry is one of the fastest-growing industries in the world. It has grown from a $1 trillion market in 2014 to a $5 trillion market in 2022. The annual growth rate is over 14.56%, and more than 2 million new businesses are starting every year in this industry. These businesses need to sell their products and services online, but they also need to create an e-commerce sales funnel so that they can maximize their profits.

The first thing you need to understand about creating an e-commerce sales funnel is that it is not just about getting people to visit your website or store. It is about converting them into customers and getting them to buy something from you. 

If they do not buy anything, they will not become repeat customers or share any of your content with their friends or family members.

When you create an e-commerce sales funnel, you want it to be as simple as possible for potential customers to find what they are looking for on your website or store and then make their purchase without any issues.

Here are 7 important reasons why you should create an e-commerce sales funnel:

Sales funnel helps you focus on the people who matter

You may get traffic from multiple sources, but only a small percentage of visitors convert into customers. Your e-commerce sales funnel allows you to ignore low-quality traffic and focus on high-value prospects only. This will save you time and money.

Prioritizes where to spend your money

Your time is valuable, and so is your money. The more you know about which products are selling well and which ones aren’t, the better positioned you are to focus on what matters most — growing your business!

For example, if you have a product with high-profit margins but low conversion rates, it makes sense to focus on improving those conversion rates before investing in another product.

Streamlines your marketing efforts

An e-commerce sales funnel will help streamline all your marketing efforts so that they are directed towards the same goal: getting people to make a purchase. This means you won’t be wasting money on ads that lead nowhere or spending time on social media posts that don’t convert. 

Instead, you’ll be able to focus all your energy on the best channels for your business.

Building trust and driving action with potential customers

A sales funnel helps build trust with customers by providing a clear path for them to follow. People tend not to trust businesses as easily as they did in the past, which means you need to work harder than ever to win their confidence and convince them that they can trust you with their money. 

A clearly defined sales funnel gives them this information at every stage of the buying process, so they can make an informed decision about whether or not to buy from you — which means less time spent trying to convince people that they need what

Driving immediate conversion

A well-designed sales funnel drives immediate conversion because it has all the necessary elements, like product information, pricing, etc., in place. With this kind of arrangement, it becomes easier for users to make a purchase decision within a few seconds or minutes rather than having to browse through different pages or even days before making their final decision.

The sooner you can get your customers to convert into paying customers, the sooner you’ll see results – and the sooner you’ll be able to reinvest those profits into your business.

Building social proof and generating word-of-mouth buzz

If you have a small business, there’s nothing better than having happy customers who will sing your praises to their friends, family, and colleagues. 

And that’s what a good e-commerce sales funnel can do for you. It will build social proof by showing off all of your happy customers, which will, in turn, help generate more word-of-mouth buzz about your brand.

Gives you more control over your ROI (return on investment)

An effective e-commerce sales funnel you more control over your return on investment (ROI). You will know exactly what works and what doesn’t so that you can continue to improve it over time as needed. 

This way, instead of guessing which ads might work or which social media channels will get customers, you’ll know exactly what does work and what doesn’t so that you can stop doing things that aren’t working and start doing things that do work!

The 4 E-commerce Conversion Funnel Stages

The conversion funnel is a marketing concept that describes the process of turning website visitors into customers. It is one of the most important concepts in e-commerce and digital marketing since it helps you understand what’s working and what isn’t.

It describes a series of steps that lead up to a conversion, or the point at which somebody agrees to buy something from you.

The 4 e-commerce conversion funnel stages are:

Awareness stage: Where people first come in contact with your brand.

Consideration stage: The point at which customers begin researching and comparing products and services.

Desire stage: The point at which customers make a decision on what to buy or not to buy.

Action stage: When customers actually buy something from your website.

The classic four-stage conversion funnel looks something like this:

 Visitor → Interest → Intent → Purchase

Let’s look at each of the stages in detail.

Stage 1: Awareness

Awareness is where you reach out to potential customers and let them know about your product or service. This can be done through social media posts, press releases, content marketing, or any other marketing efforts that spread awareness about your brand and products to potential customers. 

Before people can buy from you, they need to know who you are and what you do.

The goal of this stage is to get people to visit your website and spend time exploring it. This means you need a strong online presence and an easy-to-navigate website with valuable content that keeps visitors interested in your offer.

Stage 2: Interest

Once they’ve found your site and explored it, they may become interested in one of your products. This is where you can use remarketing campaigns to connect with people who haven’t converted yet but have shown interest in one of your products or services by visiting them.

Suppose someone visits several pages on your website before making their purchase decision. In that case, you should try retargeting ads to remind them about the product or service they were interested in earlier and other similar items that might interest them too. 

It’s important to ensure there are enough incentives for customers to complete the purchase process, such as free shipping offers, discounts, or vouchers, so they complete the purchase.

Stage 3: Desire

This stage is where customers start to have a real interest in your product. It’s where they’re looking at the product, knowing what they want, and considering whether or not to buy. If you do this well, people will be ready to buy from you.

This stage aims to help customers see themselves as owning the product or service. You can do this by showing how much better it will make their life and how easy it will be for them to use it.

Stage 4: Action

If you can get someone to this stage, that means you’ve done everything right, and now it’s just about closing the deal. 

You want them to decide whether or not to proceed with the purchase. This is when you ask for payment information or other details that make a purchase finalized at some point in time.

If they’re on your website, you need to ensure that your checkout process is simple enough so that they can complete their purchase without any hassle. If they’re offsite (for example, an ad referred to them), you must give them clear instructions on what to do next to complete their purchase.

What are the most important KPIs for product managers or e-commerce owners to monitor when optimizing an e-commerce Funnel?

If you’re a product manager or an e-commerce owner, your primary job likely is to improve conversion rates and revenue.

In order to do so, you’ll need to understand what your customers are doing on your site.

This means understanding how they interact with various products and services, where they drop off, and what drives them toward making a purchase (or not!).

Here are some of the most important KPIs for product managers or e-commerce owners to monitor when optimizing an e-commerce funnel:

Click Conversion Rate

The click conversion rate is the percentage of visitors who click on a specific link from your website. This metric is an important indicator of your marketing efforts and how well you attract customers. The higher this metric is, the more effective your campaigns drive traffic to your site.

In most cases, this KPI will be measured in percentages or as a total clicks per day/month/year ratio. For example, if you have a 1% click-through rate (CTR), it means that 1% of all users who visit your website click on the ad banner that brought them there. If you have a 5% CTR, it means that 5% of all users click on ads that bring them to your site.

Cart abandonment rate

This tells you how many people add items to their carts but do not complete their purchases. It’s important because it shows how many people started a purchase but didn’t finish it, which means they’re interested in buying something from your store. 

For example, if 100 people visit your site and 40% add something to their shopping carts but abandon them before checking out, your cart abandonment rate is 40%.

Note that this number will vary depending on your industry and category, but it should be 6% or less if possible (under 5% is ideal).

Add to Cart Rate

The Add to Cart Rate is the number of visitors who add an item to their shopping cart.

It’s a good indicator of how much attention you’re getting from your visitors. If you have a low Add to Cart Rate, it could be because your product is not as visible on the page or because it’s not as relevant to them.

In this case, you should consider improving your website’s UX and purchase process so that users are more likely to add products to their carts.

Customer Lifetime Value

Customer Lifetime Value (CLV) refers to the amount of money an average customer spends with a company over their lifetime. This metric can be calculated by dividing total revenue by the number of customers purchased in x days.

For example, if you have 10 customers who each buy a product for $25 on average and make 4 purchases per year, then your CLV is $1,000.

Average order value

The most important KPI for product managers or an e-commerce owner to monitor when optimizing an e-commerce funnel is the average order value (AOV). 

Average order value is the total revenue generated by a customer divided by the number of orders that the customer has made. For example, if a customer spends $100 on four orders, their AOV would be $25. This number can be used as a benchmark for your business. You can also compare different strategies and see which ones perform better than others.

It tells you how much money you’re making from each customer, and it is a good indicator of whether or not your overall revenue will grow or shrink in the future. 

If your average order value declines, your customers buy less expensive items than they used to. This can happen for many reasons, including a change in consumer behavior or a shift in pricing strategy by one of your competitors.

Retention Rate

The retention rate measures how many customers purchase from your website after their first purchase. 

The retention rate can be calculated by dividing the number of returning customers by the total number of customers and multiplying that result by 100. For example, if there are 100 new customers for a website in January and 75 of those people return to purchase again in February, the retention rate would be 75%.

It indicates whether they continue to buy from a store after their initial purchase, and it’s one of the most important metrics in determining revenue growth.

If your product is successful and growing, you will probably also see your retention rate increase over time. But if it isn’t, it probably means that users aren’t finding enough value in your product to keep coming back, which can be bad news for revenue growth!

Repurchase Rate

Repurchase rate is one of the most important metrics for e-commerce businesses. It’s a measure of customer loyalty, and it’s critical to your company’s growth and profitability.

The formula for calculating the repurchase rate is very straightforward:

Repurchase Rate = (Number of repeat purchases) / (Total number of customers)

For example, if 1,000 customers for a specific item and 100 people have repurchased it, your Repurchase Rate is 10%.

The higher the repurchase rate, the better because customers are happy with their experience and will keep buying from you again. 

It also tells you how well your marketing campaigns are working because they help bring new customers to your site, which convert into repeat buyers.

Returns

Returns are one of the most important KPIs for e-commerce companies. Returns often indicate that customers have been unhappy with their purchases and are looking to return the goods. This can be particularly costly if you’re selling products that aren’t returnable, like electronics or clothing.

Return rates will depend on your business model, but it’s usually between 2% and 10%. By monitoring these numbers, you’ll be able to see if there is an issue with returns before it becomes a problem.

The formula for calculating your returns rate is:

Returns Rate = (Returns / Revenue) * 100

A high return rate indicates that the product is not meeting customer expectations and needs to be adjusted or re-launched.

How To Build an Optimized E-commerce Conversion Funnel?

Your e-commerce conversion funnel is the most important part of your business. It’s where you can find out what’s working and what’s not and how to optimize your website to increase conversions. But how do you build an optimized e-commerce conversion funnel?

Here are 7 steps to build an optimized e-commerce conversion funnel:

Step 1: Define your conversion event—what do you want users to do?

Before you can optimize your e-commerce funnel, you need to know what your conversion event is. The conversion event is the action you want people to take on your site that will lead them toward becoming customers. It could be something like “add item to cart” or “add to wish list” or “sign up for the newsletter.”

Once you define your conversion event, it’s time to think about how people will get there. There are many ways that people can arrive at your website, including search and social media traffic, links from other sites, and email campaigns. But not all visitors will convert — some will leave without doing anything — so it’s important to know where most of your conversions come from before making changes that could affect those visitors negatively (like removing links from other sites).

Step 2: Map your big funnel

You know the goal of your e-commerce conversion funnel, but now you need to map out the steps you want your customers to take.

The big question is: How many steps do you need?

The answer depends on your product. For example, a clothing store might need just three steps: point-of-sale, order confirmation, and shipping confirmation. But if you’re selling an ebook or software, it might take six or seven steps to get the customer through the buying process.

It’s also important to consider how long each step takes. If it takes your customers 10 minutes to complete five steps, they will be less motivated than if they can finish all seven steps in five minutes or less (assuming all seven steps are necessary).

Step 3: Identify dropoff points—these indicate major opportunities.

The next step is identifying where customers drop off in your funnel. 

A conversion funnel is a visualization of the steps you want your customers to take before they become paying customers. Still, it’s also a great way to identify areas where you can improve the customer experience.

Many people think dropoff points are when visitors leave the site without buying anything. But this isn’t always true—it’s often when they’re just about to make a purchase that they leave! For example:

• Visitor lands on the product page but leaves before adding to cart
• Visitor adds product to the cart but leaves before checking out
• Visitor adds item to cart but leaves before paying for items

There’s a clear opportunity for improvement in each case by understanding where these points are happening in your funnel and why you can drastically improve conversion rates across the board.

Step 4: Go granular—look for the small fixes that yield big dividends.

Now that you have a general idea of how your site stacks up against the competition, it’s time to get granular.

The best way to do this is to look at the most important pages on your website and evaluate them with a critical eye.

Here are the main things you should look for:

Content quality: Does your content answer people’s questions? Is it up-to-date and relevant? Is there too much or too little information?

Design quality: Does your design make it easy for users to find what they’re looking for? Is it clear where they should go next? Is there anything distracting them from their goal?

Navigation structure: Can users easily find what they’re looking for without getting lost in your website’s labyrinthine maze of links and pages? How can you improve this experience for different types of customers (e.g., first-time visitors vs. returning customers)?

Proper use of popups: If someone visits your site and sees a popup immediately, they might think you’re trying to sell them something immediately. That’s why we don’t recommend using popups until someone has been on your site for a while and has already engaged with some of your content.

Similarly, it needs to be well-timed if you have an exit intent popup (which pops up when someone is about to leave your site). If people need more time to decide whether they want to buy something or not, then they won’t want a popup telling them that they should buy now!

Once you’ve identified specific areas for improvement, test different solutions (A/B testing) by implementing them on a small subset of traffic (20% or less) and measuring their impact over time.

Step 5: Segment users into both successful and unsuccessful groups.

Segmentation is splitting your user base into smaller groups based on shared characteristics. The more you segment your users, the easier it will be to understand what’s working and what’s not. This allows you to make better decisions about where to spend your marketing resources (i.e., time and money).  

You can use segments to:

• Identify which segments are performing well and which aren’t so you can focus on the ones that matter most.
• Analyze how different segments interact with your website so you can optimize for them individually or as a group.

Segmenting customers allows you to identify trends within your audience and make educated decisions about how to improve their experience with your brand or product offerings.

Step 6: Consider your sources and optimize messaging.

In this step, you want to look at the traffic source for each page in your funnel. For example, if you’re getting most of your traffic from search engines, then you should optimize your pages for search engine optimization (SEO).

Optimizing those pages for social sharing and affiliate links makes sense if you’re getting most of your traffic from social media or affiliates.

Step 7: Hypothesize, test, repeat.

The final step in the A/B testing process is to analyze the results. While this sounds like a simple task, it can be not easy when dealing with dozens of tests and thousands of visitors each month.

The key to testing is to measure the results of your hypothesis. If you don’t measure them, you don’t know if your hypothesis was right or wrong. This means that you have to have some analytics software installed on your website so that it can track the different variables of your e-commerce conversion funnel.

Once you have this data, you can use it to help guide future decisions on how best to optimize your e-commerce conversion funnel based on what works and what doesn’t.

The Secrets to Get More Conversions on your E-commerce Offers

Creating a sense of urgency is key to a successful e-commerce offer. If you want people to convert, you need to give them a reason to do so right now. The biggest mistake many e-commerce businesses make is that they don’t create offers targeted toward their audience.

This happens because you lack knowledge and understanding about your customers’ needs and wants. You can’t just put up an offer and expect people to buy it immediately. You need to know what they want, what makes them tick, and how to get them hooked on your offers.

Here are some evergreen secret tips so that you can create a compelling e-commerce conversion offer for your business:

Analyze and optimize your main pages

The first step in getting more conversions is analyzing how well your site performs today. Use Google Analytics to understand how people find your products, where they drop off along the way, and how often they return to complete a purchase.

The most important pages on your site drive most of your traffic: your homepage, category pages, and product pages. 

If these are performing poorly, it may be because they don’t address what customers want or because they’re too complicated or confusing. Make sure you have clear calls to action encouraging visitors to engage with your brand.

You should also look at the shopping experience:

• Which steps do people take before making a purchase? 
• How long does it take them? 
• Are there any bottlenecks slowing things down?

Optimize all your main pages to give your customers all the information they need about your product or service and a clear call to action that will lead them to the conversion point (purchase).

Analyze and optimize your forms

Analyzing and optimizing your forms is the most important part of any conversion rate optimization strategy. Forms are where users interact with your offer and decide whether they want to take action (make a purchase or sign up for a free trial).

The first step in analyzing your forms is understanding how each form affects conversion rates. If you have multiple forms, it makes sense to analyze each separately because each form will have unique characteristics that may affect conversion rates differently.

Once you’ve analyzed each form separately, look at what changes could be made to increase conversions without negatively affecting user experience or performance metrics like abandonment rate (the percentage of people who leave without taking action). Some possible optimizations include the following:

• Reduce friction by removing unnecessary fields or streamlining them into fewer steps

• Add social proof by highlighting popular options or testimonials from satisfied customers
• Use validation to ensure that data is being entered accurately and consistently

Analyze and optimize your checkout pages

The checkout page is a crucial element in any e-commerce website. It’s the last step before a customer makes a purchase, and, as such, it’s important to ensure that you are doing everything possible to get more conversions on this page.

Here are some tips that will help you optimize your checkout pages:

• Use the right payment gateway
• Make your checkout process simple and fast
• Show customers their cart contents before clicking “checkout”
• Provide multiple payment options

To increase conversions on your e-commerce offers, it’s essential to understand what drives people to buy products or services from you. The better you understand your target audience and their buying behavior, the easier it gets for you to make them convert into buyers.

With a good system in place, you can easily start analyzing your website from the moment you launch it until the end of time! The key is having a process that helps you look at each page objectively — one that doesn’t involve any opinions or personal feelings about each page because those are often biased and not helpful for making decisions based on facts.

How to optimize your conversion funnel for the nonlinear customer journey

The customer journey is not linear. It’s not just a series of steps that customers take from point A to point B.

In today’s world, customers constantly interact with brands and products in different ways — through social media, email, and mobile apps. They’re also navigating the path to purchase in nonlinear ways; they might start by researching a product, then talk to friends about it before finally making a purchase.

As a result, it’s important to optimize your conversion funnel for the nonlinear customer journey. Here are some tips and suggestions for doing so:

Top of the funnel

The top of the funnel is where you want to spend your time and resources. This is where you will find your most engaged and loyal customers, ready to buy. You need to focus on creating content that attracts those people to get there.

Create content that addresses the pain points of your target market, such as blog posts or eBooks. Then optimize for SEO and share it through social media, paid, and email marketing. 

SEO (Search Engine Optimisation) and paid search

Create a website that people can easily find via Google and other search engines. This means having a good title tag, meta description, headings, page structure, and call-to-action buttons. This will help increase your ranking in search engines when someone searches for products like yours.

In addition, it’s also important to build links from other websites back to yours — this is known as link building. It can be done naturally by guest posting on other relevant websites or by hiring an agency that specializes in link-building services.

If you’re not already familiar with SEO tactics, don’t worry! There are plenty of websites out there that teach the basics of how to get started with it.

Advertising on social media channels

Social media advertising has become a powerful channel for e-commerce businesses because it allows them to target their audience based on demographics, interests, or location — all things that can be tracked with cookies. 

Facebook is the most popular social network for e-commerce businesses because they have the most sophisticated targeting options available. Still, other platforms like Instagram are worth considering if they’re relevant to your business model.

Creating interesting content that will hook people in

The goal is to create content that is relevant but also interesting enough to capture their attention and make them want to learn more about what you have to offer. This can be done through blog posts, videos, infographics, or any other media that you find effective.

This is one of the most important parts of your marketing efforts because it helps get people onto your website. If you have an interesting blog or share information on social media, people will want to click through and learn more about what you’re talking about.

The best way to do this is by creating unique content that appeals directly to your customer base. For example, if you sell pet supplies, then write an article about how to care for a certain type of animal (cats vs. dogs). This will help build trust with potential customers looking for ways to better care for their pets. 

Similarly, you can also use this strategy for writing about seasonal events like Christmas or Valentine’s Day to promote products that would be useful during those times (e.g., gifts).

Community engagement and influencer marketing

One of the best things you can do is engage in community building. This doesn’t mean just posting on social media, although that is part of it. You must be active in forums and groups relevant to your business and industry.

This will help develop relationships with potential customers, so when they decide to buy from you, they know exactly whom they are buying from. It also enhances your reputation as an expert in your field, which creates trust and credibility for potential buyers.d

Community engagement also increases brand awareness by allowing people to see what kind of content you produce and how it relates to their interests or needs.

Similarly, influencer marketing is one of the best ways to optimize your top-of-the-funnel for e-commerce. Influencers are people who have a following on social media and can promote your business in exchange for money or products. These influencers will help you reach an untapped audience that you couldn’t otherwise reach with traditional advertising methods.

Mid-funnel

At this point in the funnel, your customers are considering making a purchase. They’ve either found you through a search or have been directed to your site from an advertisement.

This is a great time to try and get them to take action, but it’s also important to recognize that they aren’t ready yet. They haven’t added any products to their cart, let alone purchased anything.

Optimizing the middle of the funnel is all about guiding the customer along their decision-making process with relevant content. This can include:

In this stage, customers still learn about your brand before making a purchase decision. Here are some tips on how you can optimize your mid-funnel conversion metric.

Optimising your website user experience (UX)

You first need to improve your website’s UX to meet your customer’s needs and increase conversions. To do this, you need to identify potential friction points and fix them by adding or changing elements on your site. 

You can also use data from Google Analytics or heat maps to find where users are getting stuck on certain pages and then make improvements based on that data.

Using content to showcase product features and benefits

The middle of the funnel is where you can start to sell your products. This is where you want to be driving traffic and converting them into buyers.

To do this, you want to use content to showcase the features and benefits of your products in a way that’s easy for customers to understand. This will help them make an informed purchase decision.

Here are some ways you can use content in your e-commerce conversion funnel:

•  Use product videos or photos instead of static images. You can provide more information about each product and highlight specific features or benefits.
•  Use blog posts to explain how to use or maintain products before they arrive at their homes.
•  Create editorial content that explains why certain products are better than others in their category (and show how those benefits translate into money saved).

Educating and supporting decision-making with reviews and buyers’ guides

When optimizing the middle of your funnel, you want to focus on educating and supporting decision-making with reviews and buyers’ guides.

A buyer’s guide is a document that summarizes all the key information about a product or category, including what it does, who should use it, how to use it and why you should use it.

The idea is to give potential customers more information about what they’re considering purchasing before making a decision. This can be extremely helpful in long sales cycles where customers need more time to make up their minds.

You can also create content that helps people make better buying decisions by giving them insights into their buying behavior. 

Similarly, reviews are great for showing off your strengths and identifying areas for improvement so that visitors know what they’re getting into before they buy from you.

Live chat on product pages

Live chat is a great way to improve your conversion rate. Live chat can be used for various purposes, but answering customer questions about products is the most common. If you have a good live chat solution, you’ll be able to answer every question from your customers.

Live chat can also be used to upsell and cross-sell products. If a customer is looking at a certain product, you might suggest other products that might interest them.

Using social proof

Social proof is a great way to boost confidence in visitors who are hesitant about making a purchase. Adding reviews, testimonials, and proof that other people have succeeded with your product will make customers feel more confident about buying it themselves.

Bottom of the funnel

The bottom of the funnel is where you want your customer to be if you’re running an e-commerce business.

Here are some strategies for closing more sales:

Offering promotions and benefits

The most common way to close more sales is by offering a promotion or discount that makes the prospect feel like they’re getting a deal. You can do this directly on your product pages or through email newsletters. If someone adds an item to their cart but doesn’t buy, send them an email with a coupon code for their next purchase.

Upsell and cross-sell

This is a very effective strategy for e-commerce companies because it helps increase average order value (AOV) and gives customers more reasons to keep shopping on your site. 

Upselling refers to offering premium products or services at a higher price point, while cross-selling refers to offering related products that complement the original purchase. Both strategies allow you to convert more prospects into buyers and increase revenue per customer over time.

Objection-handling

If someone has reached this stage in the buying cycle but isn’t ready to buy yet, it’s time for some objection handling. It might be as simple as asking questions about their concerns or offering an alternative solution (such as using a different payment method).

An objection stops people from buying from you — such as, “I’m not going to spend $100 on this.” 

You must overcome these objections before they become legitimate reasons not to buy from you!

Remarketing

Remarketing is a powerful tool for e-commerce companies. It allows you to target people who have already visited your site and remind them of the products they looked at or even just viewed.

Remarketing works by adding a pixel to your website code. This pixel tracks the behavior of users who come to your site, allowing you to target them with ads later. For example, if a user visited your product page but didn’t make a purchase, you can create a remarketing ad that targets that user and shows them an offer for that product again when browsing other websites.

Remarketing is especially useful after an initial sale because it allows you to re-engage with customers who have already shown interest in what you’re selling — or at least expressed enough interest to visit your site.

Abandoned cart emails

Abandoned cart emails are one of the most effective ways to increase your e-commerce conversion rate. A study by BloomReach found that customers who were sent an abandoned cart email were 3x more likely to purchase than those who didn’t receive one.

Abandoned cart emails are emails sent to customers who added items to their cart but did not complete the checkout process. They exist because people often abandon carts because they get distracted, forget about their purchases, or change their minds. 

In fact, according to research by Baymard Institute, almost 68% of users abandon carts at least once during an online shopping session, and over 80% of these abandoners go on to buy from another retailer (Baymard Institute).

Abandoned cart emails have become an indispensable part of any serious e-commerce strategy. These emails are highly effective at driving conversions because they’re sent immediately after customers abandon their carts. Hence, they’re still top-of-mind when they receive the email — especially if it’s personalized! This gives you a great opportunity to win back lost customers by reminding them about their abandoned product and encouraging them to complete their purchase.